Research and Development Tax Credit

This credit offers tax relief to Nova Scotia corporations that incur qualified scientific research and experimental development (SR&ED) expenditures made in Nova Scotia, as defined by the federal Income Tax Act.

The credit is administered by Canada Revenue Agency (CRA) and is claimed in conjunction with federal SR&ED tax credits.

The Nova Scotia credit should be claimed on Schedule 340 for taxation years 1998 and later.

A 15 per cent rate is applicable to all corporations that incur SR&ED expenditures in Nova Scotia, regardless of size.

EligibilityThis credit is based on qualified expenditures eligible for the federal SR&ED tax credit:

R&D credit applicant is advised to prepare the federal SR&ED credit filing in preparation for the provincial credit- Federal credit is claimed on form T661- Nova Scotia tax credit is claimed on schedule 340 of your Nova Scotia T2 form

The federal credit rules are detailed and potential claimants are advised to review federal documentation regarding the SR&ED credit

Refunds

Refunds are available to corporations that incur qualified SR&ED expenditures in Nova Scotia where the corporation has or would have taxable income allocated to the Province:

Corporations that incur qualified SR&ED expenditures will be eligible for a refund of the tax credit where the tax credit exceeds Nova Scotia tax payable

The refund amount is equal to the amount of the credit in excess of tax otherwise payable under the Nova Scotia Income Tax Act

Use the Services Directory to quickly access information on all of the services provided by the NS Department of Finance and Treasury Board.

For More Information

The Canada Revenue Agency (CRA) administers the NS R&D credit and corporate income tax on behalf of the Province. The CRA can answer your corporate income tax questions for both federal and provincial income tax systems.

Information on eligible expenditures and projects, claiming the credit, and appropriate forms can be obtained from your local Canada Revenue Agency (CRA) Taxation Centre. In many cases the guides, documentation and contacts may be located on CRA's website.